Now Giorgia Meloni wants to make cross-border commuters in Switzerland pay. Houses in Europe marked with Stars of David – a trail leads to Russia

epa10957052 Italian Prime Minister Giorgia Meloni smiles as she attends the wreath laying ceremony at the monument to the Unknown Soldier at the Altar of the Fatherland on the occasion of the celebration of the ...
A new tax aims to help Italian commuters in Switzerland finance Italy’s healthcare system. The unions protest.
Gerhard Lob/ch media

Italian hospitals and healthcare institutions along the border with Switzerland have been complaining for a long time. They are increasingly having difficulty recruiting suitable nursing staff and doctors. The reason is known: many Italians in healthcare are looking for a job as close to the border as possible, especially in Ticino.

They are needed there and deserve much better than in Italy. There are no language problems. Facilities in the Italian provinces of Como and Varese, but also in Sondrio, are particularly at a disadvantage because they do not have sufficient staff for hospitals, retirement and nursing homes or rehabilitation clinics.

The Italian government under Prime Minister Giorgia Meloni now wants to take countermeasures. And massively. In the first draft budget for 2024, Article 49 stipulates that cross-border commuters in Switzerland must pay between 3 and 6 percent of their net wages in taxes in Italy to finance national healthcare there. The respective regions where cross-border commuters are located, such as Piedmont and Lombardy, should determine the concrete approach within the specified scope.

Expected turnover of 110 million euros

The proceeds are intended to finance health facilities in the border region, which are suffering from the exodus of local skilled workers. This tax only applies to cross-border commuters under the old cross-border commuter regime, who are subject to a withholding tax in Switzerland. Cross-border commuters who are covered by the new Cross-Border Commuter Agreement between Switzerland and Italy that entered into force on July 17, 2023 and who will also be subject to tax in Italy from 2024 are not included in the innovation.

In concrete terms: For a net salary of 4,000 francs in Switzerland, if the maximum rate of 6 percent is applied, 240 francs per month would have to be paid to the regions of Lombardy or Piedmont. According to Italian media, the new taxes on cross-border commuters could generate 110 million euros in revenue, which will be passed on to health institutions. According to calculations in Italy, wages for nurses or doctors could therefore be increased there by about 750 euros per month. However, the legal innovation is not yet final.

Critics speak of ‘theft’

The proposal for the maneuver comes from Minister of Finance and Economy Giancarlo Giorgetti (Lega), who comes from the Varese area and knows very well the dynamics of cross-border commuters. It should be noted that Italian cross-border commuters working in Switzerland would actually have to insure with a Swiss health insurer, but due to current regulations they can also remain in the Italian state health system if they do not insure in Switzerland. . In contrast, natural persons in Italy pay 21 percent of their income as taxes to finance the public health system.

The cross-border commuter agency of the OCST trade union initially showed understanding for involving cross-border commuters in the financing of the Italian healthcare system. In the meantime, however, an alliance of trade unions has called on the government in Rome to scrap the planned Article 49 without replacing it.

Criticism is expressed that the new tax was not drawn up in consultation with the unions and was not part of the negotiations. As regards the amount of the levy, a gradual approach is necessary. But above all, this tax contradicts the cross-border commuter agreement for “legacy cross-border commuters”, which waives tax collection in Italy. Taxation is, as it were, introduced through the back door.

Senator Alessandro Alfieri of the Democratic Party (PD) described the Meloni government’s proposal in the daily newspaper ‘La Regione’ as a ‘pasticcio’ (mess) and a possible violation of the constitution. Party colleague Toni Riccardi of the Swiss police and member of the Italian Chamber of Deputies called the new clause a “theft” (scippo) intended to cover up the League’s shortcomings in the healthcare system.

Cross-border commuters benefit from the strong franc

Apart from that, whether this deduction will be enough to reduce the attractiveness of the Swiss healthcare system for Italian workers and increase it for Italian workers remains to be proven. But there is undoubtedly a problem. In the provinces of Como and Varese alone there is a shortage of about 400 to 500 nurses and doctors. Between 2021 and 2022, around 500 nurses were trained at the Università dell’Insubria, most of whom subsequently found jobs in the canton of Ticino. The neighboring Italian provinces not only lack suitable workers, but also train people who then immediately ‘escape’ to the neighboring country as cross-border commuters.

Wages of cross-border healthcare commuters do not differ from those of local workers due to applicable collective bargaining agreements, but have increased dramatically thanks to the strong franc alone. Ten years ago you had to pay 1.23 francs for one euro, now you only pay 95 cents.

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Amelia

Amelia

I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.

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